Info

'Numbers in parentheses are t statistics.

Source: John P. Caskey and Andrew Peterson, "Who Has a Bank Account and Who Doesn't: 1977 and 1989," Research Working Paper 93-10, Federal Reserve Bank of Kansas City, October 1993.

c. Using the data on Y* andX given in Table 15.24, estimate a probit model. You may use any statistical package you want. The authors' estimated probit model is the following:

Find out the P(Y* = 1 | X = 0.48), that is, P(Y1 > 0 | X = 0.48). See if your answer agrees with the authors' answer of 0.64.

d. The sample standard deviation of the Xvalues given in Table 15.24 is 0.31. What is the predicted change in probability if X is one standard deviation above the mean value, that is, what is P(Y* = 1 | X = 0.79)? The authors' answer is 0.25.

CHAPTER FIFTEEN: QUALITATIVE RESPONSE REGRESSION MODELS 633

TABLE 15.24 HYPOTHETICAL DATA SET GENERATED BY THE MODEL Y = -1 + 3X + s AND Y* = 1 IF Y > 0

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